Cross-listing and the long-term performance of ADRs: Revisiting European evidence

Franck Bancel, Madhu Kalimipalli and Usha R. Mittoo

Journal of International Financial Markets, Institutions and Money, 2009, vol. 19, issue 5, 895-923

Abstract: In this paper, we examine several cross-listing theories employing a sample of over 250 European ADRs representing 19 countries during the 1970-2002 period. We find that, first, though both Levels II and III listings underperform over the 3 years subsequent to the US listing, the determinants of long-term performance are significantly different for the non-IPO and IPO firms. Second, there is a strong support for investor recognition in the non-IPO sample, for window-of-opportunity in the IPO sample, and for bonding in both samples, but little support for the market segmentation hypothesis. Overall, our results support the notion that different cross-listing theories are complementary and not mutually exclusive, in explaining the long-term performance.

Keywords: Long-run; stock; performance; US; listings; European; ADRs; Capital; raising; ADRs; Initial; public; offerings (search for similar items in EconPapers)
Date: 2009
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Citations: View citations in EconPapers (8)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:intfin:v:19:y:2009:i:5:p:895-923

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